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One of the most important rules of borrowing money is that you should only use borrowed funds to make wise productive purchases. All forms of borrowed money or cash advance that you receive are not your money. It is just money that you are allowed to use now and pay back later at a cost. The cost of using that money is the interest you are charged. Do not use borrowed funds or credit cards to throw parties, watch movies or go for vacation. Why spend extra that you do really have and place yourself in debt when you could really do without that particular thing?

Another rule is that one should not be too quick to borrow money. Each time you use your credit card you are taking a loan that you would pay back with interests. Use your cards wisely. Try to avoid using a loan to pay for a loan, because you are just increasing the cost of the money borrowed. Try to be prudent, work with a budget and save more. You should also try to keep your debt/income ration low. If a larger part of your income goes to servicing debts, then you are in trouble.

It also helps to take a little time to shop around for cheap rates and sources of loans. All lenders do not have fixed rates of loaning people money. Shop around, negotiate and you can be amazed of the good deals you could find. Most importantly, pay your debts on time and when due so as not to ruin your credit rating and your ability to get easy and cheap loans in the future.